marketing (strategic unit)
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STRATEGIC BUSINESS UNIT
Presented By :
Purushotam SatiPujil KhannaVinod KumarRabi Kr. Pradhan
ANALYSIS OF STRATEGIC PLANNING
Defining the corporate mission Establishing strategic business
unit Assigning resources to each SBU Assessing growth opportunities
WHAT IS STRATEGY ?
STRATEGY IS A SET OF KEY DECISIONS MADE TO MEET OBJECTIVES.
WHAT DOES STRATEGY INCLUDE ?
The Company objective The strategy and tactics that will enable the company to reach those objectives The resources required, and how they
are going to obtained Who is responsible for the choosing the
goal? What are the company’s business risks
and external factor?
ELEMENTS IN STRATEGY FORMULATION
MISSION
OBJECTIVE
GOALS
TARGETS
FORMULATION
ACHIVEMENTS
ROLE OF STRATEGIST
Strategists are individuals or groups who are primarily involved in the formulation, implementation, and evaluation of strategy.
STRATEGIC PLANNING
Corporate Strategy
Business Strategy
Functional Strategy
Operational Strategy
A STRATEGIC BUSINESS UNIT IS….
A Unit comprising of one or more products having a common market base whose manager has complete responsibility for integrating all functions into strategy against an identifiable competitor.
CHARACTERISTIC OF SBU
It has its own set of competitors. It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit. It is a single business, or a collection of related businesses, that can be planned separately from the rest of the company.
ADVANTAGES OF SBUS
Intra Competition.
Corporate Image.
Better Management.
Higher Efficiency.
Better Customer Services.
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STRUCTURE OF SBU
CEO
SBU I SBU II SBU III
FINANCE MARKETING PRODUCTION
DABUR INDIA LIMITED
•1884 : BIRTH OF DABUR
• 1896 : FIRST PRODUCTION UNIT
• 1940 : LAUNCH OF DABUR AMLA HAIR OIL
• 1994 : RAISES FIRST PUBLIC ISSUE
• 2000 : CROSSES RS 1000 CRORE TURNOVER
• 2005 : ACCQUSITION OF BALSARA GROUP
• 2007 : BECAME THE THIRD MOST RESPECTED FMCG COMPANIES IN INDIA
(business world November 2007)
• 2008 : START NEW “U” RETAIL CHAIN UNDER H&V STORE LIMITED.
VISION
DEDICATED TO THE HEALTH AND WELL BEING OF EVERY HOUSEHOULD
DABUR SBU’S STRUCTURE
DABUR
Consumer International Consumer Retail
Care Business Health Care Division Division Division (CCD) (IBD) (CHD)
Personal Care35%
Health & Hygiene
45%
Foods15%
Home Care5%
% SHARE IN DABUR REVENUES
CORPORATE MISSION
TRANSFORM AN AYURVEDIC COMPANY TO A GROWING MODERN FMCG PLAYER BASED ON HERBAL PLATFORM ONE THAT WOULDEMBODY ALL THE CHARACTERISTIC OF A FMCG COMPANY.
CCD STRUCTURE
CCD (Consumer Care Division)
Personal Health Home Foods
Care Care Care Care
E
35%
45%
15%5%
Personal Care
Health & Hygiene
Foods
Home Care
% SHARE IN CCD SALES
ContinualAttention Creativity
Management
Commitment
Effective Strategic Planning
WORLD-WIDE PRESENCE OF DABUR
MANUFACTURING UNITS OF DABUR IN INDIA
STRATEGY USED BY DABUR
FOUR FOLD STRATEGY
EXPANSION
ACQUISITION
INNOVATION
REGIONAL BRANDING
PROMOTIONAL STRTEGY
DISTRIBUTION STRATEGY
PROMOTION STRATEGY
T.V COMMERCIALRADIONEWSPAPER POP DISPLAY WALL PANTING VIDEO VANS SALES PROPOTION CONTEST IN MELAS OR HAATS
PROMOTION STRATEGY
DABUR HEAVILY ADVERTISED THEIR PRODUCT THROUGH VARIOUS CONTESTS-
DABUR AMLA SUNDER
DABUR AMLA SUSHEELDABUR YOGYA PRATIYOGITA HAJMOLA BAHANA CHAMPIONSHIPMELODIOUS VOICE OF PUNJABDABUR GULABARI MISS FRESH FACE
OF UP 2008
DISTRIBUTION STRATEGY
DEALER
WHOLE SALER
AGENTS
RETAILER
KIRANA STORE
REGIONAL BRANDING
Dabur is trying to capture market by launching product with a regional twist.
EXAMPLE : 1) In Tamil Nadu- Sivappu pal podi- lal dant manjan.2)Dabur red Toothpaste in East India
PRICE STRATEGY
Product Name Packaging(gm.)
Price(Rs)
Dabur Amla Hair Oil
3.5850100200300500
12112038
Nihar Amla 3.550100200
1132442
THE BCG GROWTH - SHARE MATRIX
It is based on the combination of market growth and market share relative to the next best competitor
It is based on the observation that a company’s business unit can be classified into four categories: Stars Question marks Cash cows Dogs
QUESTION MARKS (?)
Most businesses start of as question marks.
They will absorb great amounts of cash if the market share remains
unchanged, (low).
Investments should be high for question marks.
WHY QUESTION MARKS ?
Analysis with DABUR INDIA-
Dazzl
New-U
Chyawan Prakash
STARS
stars are leaders in Business.
High growth, High market share.
Effort should be made to hold the market share otherwise the star will become a CASH COW.
Analysis with DABUR INDIA-
DABUR GLUCOSE-32% (GROWTH RATE)
DABUR HONEY-26%(GROWTH RATE)
MESWAK-39%(GROWTH RATE)
CASH COWThey are foundation of the company and often the stars of yesterday.
They extract the profits by investing as little cash as possible.
They are located in an industry that is mature, not growing or declining.
Analysis With DABUR INDIA-CHYAWAN PRASHHAJMOLAREAL
DOGSDogs are the cash traps.
Dogs do not have potential to bring in much cash.
Number of dogs in the company should be minimized.
Business is situated at a declining stage.
PRODUCT CONCEPT PRODUCT DESIGN AND UNPLEMENTATION PRODUCT COMPETITIVE POSITIONING PRODUCT VALUE PROPOSITION PRODUCT MESSAGING PRODUCT DISTRIBUTION PRODUCT SERVING PRODUCT REPEAT PURCHASE PRODUCT CROSS SELLING EXTERNAL EVENTS
PRODUCT FAILURE
GROWTH STRATEGY
RECOMMENDATION
FOCUS ON NATIONAL BRANDING
WORK ON INNOVATION
CONCLUSION
DABUR HAS STRONG DISTRIBUTION NETWORK.
FOURTH LARGEST FMCG COMPANY OF INDIA
ONE OF THE MOST TRUSTED BRAND
HAVING VERY AGGRESSIVE STRATEGY TO CAPTURE THE DIFFERENT SEGMENT OF THE MARKET
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